In a lengthy and detailed post on what looks like an interesting new "employee blog"…
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Here's how they describe the device:

Every way I look, the scene shifts, the battle unfolds. I have a crazy contraption strapped to my head: a boxy set of goggles that looks like a 22nd-century version of a View-Master. It immerses me in a virtual world. I whirl one way and see zombies preparing to snack on my flesh. I turn another and wonder what fresh hell awaits.

...

Now Valve executives think they may be onto the next big thing in games: wearable computing. The goggles I'm wearing - reminiscent of the ones Google recently unveiled to much hoopla - could unlock new game-playing opportunities. This technology could let players lose themselves inside a virtual reality and, eventually, blend games with their views of the physical world.

The Times also mentions that Valve's Big Picture mode, a new interface that adapts Steam for use on televisions, will enter beta this Monday. We'll have more details on Steam's new television mode Monday morning.